ACC 201 Week 3 Assignment GAAP & Ethics

GAAP & EthicsACC 201GAAP & EthicsWhen it comes to the scheme that Mr. Blowhard has pulled on his own company all he has done is hurt his actual earnings. He has made the profits seem quiet high but this is a false pretense to true earnings. When and if the company sells the purchaser will then have to rebuy the all the lines that were recently sold in order to expand properly. This will in the end cause a huge deficit to the new company that was truly unneeded. With a huge deficit in expenses right off the bat there may the chance of collapsing the business from shortly after the purchase. The ethics that Mr. Blowhard used in this were wrong because he only temporarily improved his business and is leaving the issue for a later owner to fix if he plans to expand and make successful profits. It will for sure make his financial statements unbalanced for the assets will